J.P. Morgan Rates Qualcomm Neutral, Sets $140 Price Target Amid Competition

P. com. The investment bank also placed Qualcomm on a negative catalyst watch, signaling potential near-term challenges for the company. The downgrade reflects rising competition in the data center space, particularly from recent product launches by Arm and Nvidia.

P. Morgan stated that these new competitors have increased pressure on Qualcomm’s data center CPU and NPU markets, making successful execution more difficult and slowing revenue diversification efforts. P.

Morgan cited losses in smartphone market share as a factor contributing to the downgrade. The firm also noted reduced revenue forecasts for Qualcomm’s licensing and chipset businesses, which add to the downside risks for near-term estimates.

“Qualcomm faces competitive pressures in the data center CPU and NPU market from recent launches by Arm and Nvidia," J.P. Morgan said. > "Recent launches from Arm and Nvidia have increased competition for Qualcomm, making successful execution harder and slowing revenue diversification," the report added. The downgrade and revised price target come amid a challenging environment for Qualcomm as it navigates intensified competition and evolving market dynamics in both data center and smartphone segments.”